If you are like other people, you have probably planned for your retirement. But, this responsible move can be hard to contend with if you and your spouse get divorced. In Tennessee, all marital assets are subject to division in an equitable way. Thus, couples who share retirement assets may have to split them when they end their marriage. But, dividing assets is not always a simple 50/50 split. If you and your spouse are planning a divorce and have any retirement assets, you must understand how the divorce could affect these assets.
Equitable Distribution of Assets
Tennessee is not a community property state. Thus, if you and your spouse can agree on who gets what, a Marital Dissolution Agreement may be filed. but, you need to agree on everything in the request, do not have minor kids and are not pregnant. Otherwise, a judge will divide a marital property based on some factors. Retirement assets are considered marital as courts assume both spouses made equal contributions. Some of the factors the court will consider include how many years you and your spouse were married, both of your ages and physical and mental health, both of your skills, earning capacities and abilities for future acquisitions, and others. Ensuring you get a fair share of the retirement assets requires working with a reputable attorney such as Kenneth J. Phillips.
How the retirement fun can be split depends on the marriage’s duration, when the fund was established, and if either spouse contributed to the fun before the marriage. As with other property, retirement assets should be properly valued before division. In case one spouse established the fun before the marriage and contributed to it independently during this time, that part of the funds may be retained by that spouse and won’t be subject to division.
It Is Possible for One Spouse to Keep All Retirement Funds?
This is possible if the retirement plan is considered separate property or when both spouses agree to it. But, the non-receiving spouse might get other assets or funds in lieu of the retirement assets. For instance, the spouse who gets the retirement funds might forfeit another marital asset such as a saving fun or the house.
If you are concerned about what will happen to your retirement assets when you get a divorce, ensure you know your legal options. Contact a reliable attorney to help you understand relevant divorce laws in Tennessee.